If the position is not well controlled, it is like building a house without a solid foundation. No matter how good the position is, it is meaningless. Because no one can guarantee that the entry point they choose is 100% correct. The position must match the rhythm of the market's rise and fall. Go up when it is time to go up, and don't go up when it is not time to go up.
Cryptocurrency trading is not just about looking at which currency has a good background, but a comprehensive project of position + currency + buying and selling. If any link is not done well, the final result will not be good.
Retail investors always focus on currency selection, followed by buying and selling, and finally positions. That’s why it is said that those who can buy are apprentices, and those who can sell are masters. In fact, it is the founder who can manage positions.
The essence of position management is to know how to attack and defend, and to know when to advance and retreat. This is strategic thinking. On this basis, currency selection and buying and selling are tactical thinking.
There must be strategy before there can be tactics. Ignoring the strategy and only talking about tactics is putting the cart before the horse and will hardly lead to success.
The core of position management is to look at the environment. For example, at the beginning of this year (based on the premise that the BTC ETF was passed last year and the halving was a big positive), the market will obviously enter a climbing stage, and the total position must not be placed too low. Therefore, our team has always recommended that the spot position be placed at about half, even if there is a counter-trend, we can ensure that the account will not lose much.
This covers a concept: when trading cryptocurrencies, whether you do it yourself, follow a teacher, or even follow Wall Street bigwigs, there is a possibility of losing money. Be mentally prepared to lose money before trying to seize the opportunity to make money.
When can you increase or fully invest?
I have actually said this many times before, there are two situations, when the market is extremely strong and when the market is extremely weak.
When the market is extremely strong, fear of rising prices is a common mentality, so we must overcome this mentality and dare to go ahead. We must admit that we reminded people to increase their positions during the wave around the Spring Festival. Obviously, the market was very strong, but some users in the group still did not dare to increase their positions and missed a good opportunity.
When you add positions when the market is extremely weak, it is highly likely that you will not buy at the lowest point right away. Therefore, you must have the mentality of a scumbag and be prepared to actively buy a set. From a prudent perspective, you can add positions in batches and slowly increase your positions. If a stop loss occurs during this process, exit resolutely and find a new target that meets your bottom-fishing requirements to continue adding positions. In short, you must dare to try and make mistakes, and the rewards after trial and error are very generous.
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